Rising Wedge on Valeant Pharma

My last idea described this as an ascending triangle , but I was batshit wrong. It's a rising wedge reversal pattern.

Key features:
  • A rising trend
  • Higher highs, higher lows. Looks inherently bullish
  • A contraction of volume
  • A decrease in momentum - the confidence in this rally is wavering

When we see that lower line break with high volume , it should move fast to the downside. I haven't put much work into where it'll fall if it does, but I think it'll be enough that a target of $26 will result in a profit.

There may be a rally following the reversal, which may be a good buying opportunity.
Comment: Looking for the price to close below ~29.693 to trigger the breakout to the downside. If it does so convincingly, it might bounce back up but I think gravity will take it down soon after.
Comment: It did it, and I'm seeing some bearish candlestick patterns, if you're into that. Evening star on the 4h chart, three black crows on the 1h.
Trade closed manually: Didn't drop quite as much as I expected, but it got darn close.
+1 Reply
isosphere PRO mjgrier93
@mjgrier93, totally to brag. :)
+1 Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out